![]() In January of 2014, Siemens announced plans to delist from NYSE and move to the OTC. ![]() Some of the German companies that moved from exchanges to OTC in recent years include Bayer ( BAYRY), BASF Group ( BASFY) and Deutsche Telekom ( DTEGY). Some of them are: Nestle ( NSRGY), Roche Holding( RHHBY), Imperial Tobacco Group( ITYBY), DBS Group Holdings ( DBSDY),etc. Many large-cap multinationals trade on the OTC markets. Just the ticker will change to a five letter ticker. In such cases, an investor has the option to hold the stock even if it trades on the OTC. So trading will continue but just the venue will be different. The company may continue to sponsor the ADR program. Sometimes a foreign company may decide to delist from the organized exchanges and move to the OTC markets for any of the reasons mentioned above or some other reason. Company delists its stock from the NYSE or NASDAQ and moves it to the OTC market: Some companies may not want to spend on the added resources and deal with the reporting burden.Ī couple of options to deal with this situation are discussed below.ġ. This involves additional work on their accounting and investor relations departments. Overseas companies listed on the US exchanges have to follow the Security and Exchange Commission(SEC)’s regulations and file reports to them periodically. For example, $20,0000 listing fees per year to NYSE may not be worth it if there is hardly any investor interest in the stock. Some companies may find that expense unjustified especially if there is lack of trading volumes. The listing fees charged by NYSE or NASDAQ can run into thousands of dollars. So a company may decide to discontinue listing. It is not unusual to have trading volumes in the low thousands or even hundreds of shares per day for such stocks. As a result the daily trading volume may be thin. US investors may not show enough interest in a foreign company listed on exchanges here. There are many reasons a company can decide to delist. Why do foreign companies delist from exchanges? In this post let us discuss some of the options available to deal with this issue: One of the issues that investors in NYSE/NASDAQ-listed foreign stocks face is what to do when a company decides to delist from any of these two exchanges.
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